Title XV, JUDICIAL BRANCH AND JUDICIAL PROCEDURES (Ch. 595 - 686D)

1. On petition by a trustee or beneficiary, the court may terminate or modify a noncharitable trust or appoint a new trustee if the court determines that the value of the trust property is insufficient to justify the cost of administration involved and that continuation of the tr…

1. The court may reform the terms of the trust, even if unambiguous, to conform to the settlor’s intent if it is proved by clear and convincing evidence that the settlor’s intent and the terms of the trust were affected by a mistake of fact or law whether expressed or induced. 2.…

1. A trustee, without approval of court, may combine two or more trusts with substantially similar beneficial interests unless the trust is a court reporting trust. 2. On petition by a trustee or beneficiary, the court may combine two or more trusts, whether or not the beneficial…

1. Without approval of a court, a trustee may divide a trust into two or more separate trusts with substantially similar terms if the division will not defeat or substantially impair the accomplishment of the trust purposes or the rights of the beneficiaries unless the trust is a…

To the extent a beneficiary’s interest is not subject to a spendthrift provision, and subject to sections 633A.2305 and 633A.2306 , the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary’s interest by levy, attachment, or execution of present o…

Except as otherwise provided in section 633A.2303 : 1. A term of a trust providing that the interest of a beneficiary is held subject to a “spendthrift trust”, or words of similar import, is sufficient to restrain both voluntary and involuntary transfer, assignment, and encumbran…

A term of a trust prohibiting an involuntary transfer of a beneficiary’s interest shall be invalid as against claims by any creditors of the beneficiary if the beneficiary is the settlor. 99 Acts, ch 125, §24, 109 C2001, §633.2303 2005 Acts, ch 38, §39, 54 CS2005, §633A.2303 2008…

1. If a settlor is a beneficiary of a trust created by the settlor, a transferee or creditor of the settlor may reach the maximum amount that the trustee could pay to or for the settlor’s benefit. 2. In the case of a trust with multiple settlors, the amount the creditors or trans…

1. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary shall not compel a distribution that is subject to the trustee’s discretion, even if any of the following occur: a. The discretion is expressed in the form of a standard of distrib…

1. If a trustee has discretion as to payments to a beneficiary, and refuses to make payments or exercise its discretion, the court shall neither order the trustee to exercise its discretion nor order payment from any such trust, if any such payment would inure, directly or indire…

1. A creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the required distribution d…

1. To create, revoke, or modify a revocable trust, the settlor must be competent. An aggrieved person shall have all causes of action and remedies available to the aggrieved person in attacking the creation, revocation, or modification of a revocable trust as one would if attacki…

1. Unless the terms of the trust expressly provide that the trust is irrevocable, the settlor may revoke or modify the trust. This subsection does not apply to trusts created under instruments executed before July 1, 2000. 2. Except as otherwise provided by the terms of the trust…

Except to the extent the terms of the trust otherwise provide, while a trust is revocable, all of the following apply unless the trustee actually knows that the individual holding the power to revoke the trust is not competent: 1. The holder of the power, and not the beneficiary,…

1. During the lifetime of the settlor, the trust property of a revocable trust is subject to the debts of the settlor to the extent of the settlor’s power of revocation. 2. Following the death of a settlor, if the settlor’s estate is inadequate to satisfy the debts of the settlor…

1. The holder of a presently exercisable general power of appointment over trust property has the rights of a holder of the power to revoke a trust under section 633A.3103 to the extent of the property subject to the power. 2. Property in trust subject to a presently exercisable …

1. When a settlor fails to provide in a revocable trust for any of the settlor’s children born to or adopted by the settlor after the execution of the trust or the last amendment to the trust, such child, whether born before or after the settlor’s death, shall receive a share of …

1. If, after executing a revocable trust, the settlor is divorced or the settlor’s marriage is dissolved, all provisions in the trust in favor of the settlor’s spouse or of a relative of the settlor’s spouse, including but not limited to dispositions, appointments of property, an…

Unless previously barred by adjudication, consent, or other limitation, if notice is published or given as provided in section 633A.3110 within one year of the settlor’s death, a proceeding to contest the validity of a revocable trust must be brought within the period specified i…

1. If notice is published or given as provided in section 633A.3110 within one year of the settlor’s death, any claim against the trust assets will be forever barred unless the creditor files a claim as provided for and within the period specified in the notice. 2. If notice is n…

1. As used in this section , “heir” means only such person who would, in an intestate estate, be entitled to a share under section 633.219 . 2. The trustee may give notice as described in this section to creditors, heirs, and the surviving spouse of the settlor for the purpose of…

1. If administration of an estate is commenced in which a revocable trust or a trust in which a holder had at the date of the holder’s death a presently exercisable general power of appointment could be held responsible for the payment of debts of the settlor or holder and the ch…

1. A trustee who distributes trust assets without making adequate provisions for the payment of debts and charges that are known or reasonably ascertainable at the time of the distribution shall be jointly and severally liable with the beneficiaries to the extent of the distribut…

As used in this subchapter : 1. “Charges” means the same as defined in section 633.3 . 2. “Costs of administration” means the same as defined in section 633.3 . 3. “Debts” means the same as defined in section 633.3 . 2012 Acts, ch 1123, §24, 32

1. Unless a personal representative has been appointed for the settlor’s estate, following the death of a settlor of a revocable trust, the trustee of such revocable trust shall mail a written notice to the surviving spouse pursuant to section 633.40, subsection 5 , notifying the…

1. If the trustee is required to give notice under section 633A.3114 , the trustee shall also mail, pursuant to section 633.40, subsection 5 , to the legal guardian of each child qualified under subsection 2 and to each such child or the guardian ad litem for such child if necess…

1. A person named as trustee accepts the office of trustee by doing one of the following: a. Signing the trust instrument, or signing a separate written acceptance. b. Except as provided in subsection 3 , knowingly accepting delivery of the trust property or exercising powers or …

1. A trustee is not required to give a bond to secure performance of the trustee’s duties unless one of the following applies: a. A bond is expressly required by the terms of the trust. b. A bond is found by the court to be necessary to protect the interests of beneficiaries, reg…

Unless the terms of the trust provide otherwise, the following apply to actions of cotrustees: 1. A power held by cotrustees may be exercised by majority action. 2. If impasse occurs due to the failure to reach a majority decision, any trustee may petition the court to decide the…

A vacancy in the office of trustee exists if any of the following occurs: 1. The person named as trustee declines to serve as trustee. 2. The person named as trustee cannot be identified or does not exist. 3. The trustee resigns or is removed. 4. The trustee dies. 5. A guardian o…

1. A trustee must be appointed to fill a vacancy in the office of the trustee only if the trust has no trustee or the terms of the trust require a vacancy in the office of cotrustee to be filled. 2. A vacancy in the office of trustee shall be filled according to the following: a.…

1. A trustee who has accepted a trust may resign by any of the following methods: a. As provided by the terms of the trust. b. With the consent of the person holding the power to revoke the trust if the holder is competent or is represented by a guardian, conservator, or agent. c…

1. A trustee may be removed in accordance with the terms of the trust, or on petition of a settlor, cotrustee, or beneficiary under section 633A.6202 . 2. The court may remove a trustee, or order other appropriate relief if any of the following occurs: a. If the trustee has commi…

Unless a cotrustee remains in office, a former trustee, or if the trustee’s appointment terminated because of death or disability, the former trustee’s personal representative or guardian or conservator, is responsible for and has the powers necessary to protect the trust propert…

1. If the terms of the trust do not specify the trustee’s compensation, a trustee or cotrustee is entitled to compensation that is reasonable under the circumstances. 2. If the terms of the trust specify the trustee’s compensation, the trustee is entitled to be compensated as so …

A trustee is entitled to be repaid out of the trust property, with interest as appropriate, for all of the following expenditures: 1. Expenditures that were properly incurred in the administration of the trust. 2. To the extent that they benefited the trust, expenditures that wer…

1. As used in this section , “trustee’s fee” includes a trustee’s periodic base fee, rate of percentage compensation, minimum fee, hourly rate, and transaction charge, but does not include fees for extraordinary services. 2. A trustee shall not charge an increased trustee’s fee f…

1. On acceptance of a trust, the trustee shall administer the trust according to the terms of the trust and according to this trust code, except to the extent the terms of the trust provide otherwise. 2. The terms of the trust may expand, restrict, eliminate, or otherwise alter t…

1. A trustee shall administer the trust solely in the interest of the beneficiaries, and shall act with due regard to their respective interests. 2. Any transaction involving the trust which is affected by a material conflict between the trustee’s fiduciary and personal interests…

A trustee shall administer the trust with the reasonable care, skill, and caution as a prudent person would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. 99 Acts, ch 125, §49, 109 C2001, §633.4203 2005 Acts, ch 38, §54 CS200…

A trustee may only incur costs that are reasonable in relation to the trust property, purposes, and other circumstances of the trust. 99 Acts, ch 125, §50, 109 C2001, §633.4204 2005 Acts, ch 38, §54 CS2005, §633A.4204

A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee’s representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise. 99 Acts, ch 125, §51, 109 C2001, §633.4205 2005 Acts, ch 38, §54…

1. A trustee shall not delegate to an agent or cotrustee the entire administration of the trust or the responsibility to make or participate in the making of decisions with respect to discretionary distributions, but a trustee may otherwise delegate the performance of functions t…

1. While a trust is revocable, the trustee may follow a written direction of the settlor that is contrary to the terms of the trust. 2. In addition to any powers granted to a trustee, the terms of the trust may confer powers upon trust directors and trust protectors as set forth …

1. If a trust has more than one trustee, each trustee shall perform all of the following duties: a. Participate in the administration of the trust. b. Take reasonable steps to prevent a cotrustee from committing a breach of trust, and to compel a cotrustee to redress a breach of …

A trustee shall take reasonable steps under the circumstances to take control of and to safeguard the trust property unless it is in the best interests of the trust to abandon or refuse acceptance of the property. 99 Acts, ch 125, §55, 109 C2001, §633.4209 2005 Acts, ch 38, §54 C…